After reporting blow out earnings yesterday, shares of Ralph Lauren (RL) rallied more than 8% and finished the day at all-time highs. As shown in the chart, the stock has been a solid performer over the last two years with a gain of more than 175%. While the stock has performed remarkably, at least one analyst at a major firm has been unimpressed and has been fighting the rally all along the way.
This morning, though, even that analyst seems to have thrown in the towel by upgrading the stock...to neutral! Yes, you read that correctly. After downgrading the stock to underperform in May 2009, when it was trading at $53 per share, the analyst has remained bearish and reiterated that opinion multiple times for the last 71 points. Written more than fifty years ago, the message of the book, "Where Are the Customers' Yachts" remains just as pertinent now as it did then.